The Aussie finished the local session at US76.47¢ compared with Tuesday's US76.15¢.

It hit a high of US76.74¢ just before the 9.30am announcement and fell to a low of US76.07¢ once speculation of an interest rate rise had been removed.

"The RBA decision was pretty much in line with what the market consensus had become," said Westpac currency strategist Allison Montgomery.

Most economists had expected the central bank to pause this month after rate hikes in November and December.

Most are forecasting a rate rise next month.

"The economic fundamentals certainly still justify further tightening and our view is that by not moving today, the RBA is simply waiting to see clearer evidence of the impact of the two rate hikes to date," Ms Montgomery said.

She said the dollar was likely to retest US78¢, and then US80¢, and it would be supported between US75¢ and US76¢.

Foreign exchange market participants are now focusing on key weekend events for the next lead on the US dollar.

"The real focus for the currency markets now is the US payrolls numbers on Friday night and the G7 meeting this weekend," she said.

ANZ currency strategist Craig Ferguson said the market was reluctant to sell US dollars before those events.

Bonds strengthened on the news that official interest rates had been left unchanged for another month.

The 10-year bond closed on a yield of 5.690 per cent, compared with 5.740 on Tuesday, while the three-year bond was at 5.365 per cent, from 5.445.

Goldman Sachs JBWere's head of fixed interest, Tony O'Shea, said the market staged a relief rally on the news but had now settled back to await key US economic information.